Assured Guaranty Ltd. (NYSE:AGO) Guarantees LEAF Notes Issue


Dallas, Texas 10/18/2013 (Financialstrend) – On October 3, it was announced that $3.67 market capitalized Assured Guaranty Ltd. (NYSE:AGO) has stood guaranty for four different classes of notes which was issued by trading firm “LEAF Receivables Funding 9, LLC.” LEAF Commercial Capital, Inc. (LEAF) had put forward equipment lease and loan contracts that it had issued and serviced as collateral for the 2013-1 notes it had issued.

Credit Suisse Securities (USA) LLC led a consortium of other brokerage firms and business houses in book keeping and structuring the notes. The surety and title insurance company has guaranteed $273 million of the total $325 million notes issued by LEAF Commercial.

Analysts are commenting that one of the major reasons for the notes receiving highest ratings from Moody’s was due to the fact that Assured Guaranty Ltd. (NYSE:AGO) had stood guaranty for the notes. Long time watchers of Assured Guaranty would note that this current securitization is the third in a series that AGO has provided for LEAF’s offerings.

Commenting about the transaction, Paul Livingstone Senior Managing Director of Assured Guaranty has been quoted as saying that “LEAF has a strong origination and servicing platform and experienced management team. We’re pleased that our financial guaranty, including our strong surveillance capabilities, allows LEAF to achieve the highest structured finance ratings possible.”

Returning the compliment, LEAF’s President and COO Miles Herman has been quoted to have said that “Assured Guaranty’s participation in this transaction benefited both LEAF, from an execution and pricing standpoint, and our investors, who benefit from the strong underwriting and oversight that AGC provides.”

As of October 16 close of business the share price of the stock was trading at $19.55 per share. When the markets opened on October 17, the stock rallied upwards to post a 2.2% increase by mid day trading. Share holders of this stock would be hoping that the upward trend would continue further.